The electric vehicle and renewable energy industries are bracing for the end of tax credits they had been relying on to rapidly expand the technologies across the U.S.
The phaseout, brought on by the 2025 reconciliation law, hit the EV industry last week with the end of the federal $7,500 tax credit on those vehicles. The renewable energy industry will feel the impact next, as other Biden-administration tax credits supporting production and investment are being phased out faster by the reconciliation law.
Ford Motor Co. CEO Jim Farley said in Detroit last week he “wouldn’t be surprised” if EV sales fell to a market share of 5 percent after the tax credit ends from around 10 percent to 12 percent now.
